DHL Exel Supply Chain and IBM have announced a four-year, multi-million euro hardware, software and IT services contract with Karstadt Warenhaus, covering a new warehouse management solution based on a service oriented architecture (SOA).

Over a two-year period beginning in July 2008, the eleven DHL locations that provide logistics services for Karstadt Warenhaus will be equipped with the new solution, known as system platform logistics. Once the system goes into operation, Karstadt expects to profit from significantly improved logistics processes and reduced costs.

System platform logistics will modernise and update IT operations for Karstadt Warenhaus, the logistics arm of Karstadt/Quelle, which was taken over by DHL Germany in 2005.

The IBM SOA will replace more than twenty antiquated disparate systems with a single unified platform. This new platform will administer and manage all processes, including delivery, storage and the distribution of goods between facilities.

System platform logistics is based entirely on IBM hardware and software solutions. IBM Global Business Services is overseeing the development of the new platform – from conception through implementation to the start of operations.

According to Matthias Hartmann, managing director of IBM Germany and head of IBM Global Business Services, the new DHL logistics system platform will be one of the most advanced storage management solutions in the industry.